Grain deal sends grain prices for Japan down

Japan does not buy grain in Russia or Ukraine, however, the extension of the deal on grain export by the Black Sea influences it, as it promotes the decline in global food prices, Japan's Ministry of Agriculture said.

The grain deal influences formation of prices at which Japan buys grain in the United States, Canada and Australia, the ministry said, adding that in this sense the grain deal has an indirect influence on Japan.

A ministry official noted that Japan focuses on grain prices, which are formed on the Chicago Mercantile Exchange.

"They went down last year during the conclusion of the Black Sea deal," he said. "There is a feeling that prices have fallen again now with the extension of this deal."

Japan imports up to 90% of the wheat it needs. To stabilize the market, it is mainly purchased centrally through government channels and then resold to flour mills and food producers. From April to September, Tokyo decided to raise domestic wholesale prices by 5.6% from the previous half year due to rising costs of grain imports.